11th Mar 2008 14:27
Xtract Energy plc11 March 2008 11 March 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract refers shareholders to the following press release announced today inAustralia by MEO Australia Ltd ("MEO"). Xtract currently holds approximately 15.7% of the issued capital of MEO. "ASX AND MEDIA RELEASE BLACKWOOD-1 WELL WEEKLY DRILLING REPORT - No 6 Key points: •MDT testing recovers hydrocarbons to surface •Balckwood-1 formally declared a discovery well •Blackwood-1 P&A'd and West Atlas rig to be released later today MELBOURNE, AUSTRALIA (March 11, 2008) - MEO Australia Limited (ASX: MEO) submitsthis drilling report for the period ending 1100 hours March 11, 2008.Blackwood-1 was spudded at 1830 hours (ACST) on February 1, 2008 in ExplorationPermit NT/P68. The rig has successfully completed a series of logging runs, including therecovery of hydrocarbons to surface by MDT (Modular Dynamics Testing) down-holesampling. Additionally, a number of core samples through the column have beenobtained. The gas, core samples and log data are currently being analysed byspecialist petrophysical contractors. Initial gas analysis conducted on the righas confirmed that the gas is relatively dry and contains CO2 levels in the 25%to 30% range (very similar to Evans Shoal gas), which is eminently suitable formethanol production. Given the recovery of hydrocarbons to surface and strong electric log evidenceof a hydrocarbon column in the Plover sandstone formation of the Blackwoodstructure, formal declaration of a discovery pursuant to clause 34 of thePetroleum (Submerged Lands) Act 1967 has been made to the Designated Authority. The Blackwood-1 was drilled by Seadrill's West Atlas jack-up rig. The Blackwood-1 wildcat well is being 100% funded as a sole risk, exclusive operationby MEO. The participants in the Blackwood-1 well are: TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 50% Oz-Exoil Pty Ltd (MEO subsidiary) 50% C.R.Hart, Managing DirectorMEO Australia LimitedNT/P68 Operator" Further information on MEO can be found at www.meoaustralia.com.au. As an ASXlisted company, MEO is not subject to the AIM Rules and this drilling update hasnot been reviewed by a named "qualified person" as defined and required by theAIM Guidance Note for Mining, Oil and Gas Companies. Enquiries please contact: Xtract Energy plc Andy Morrison, CEO +44 (0) 20 7079 1798 Smith & Williamson David Jones +44 (0) 20 7131 4000Corporate Finance Limited Azhic Basirov Scott Harris Stephen Scott +44 (0) 20 7653 0030 Annabel Michie For further Information on Xtract please visit www.xtractenergy.co.uk About Xtract Energy Plc Xtract identifies and invests in a diversified portfolio of early stage energysector technologies and businesses with very significant growth potential. Weaim to work closely with the associated management teams to achieve criticalproject milestones, to finance later development stages and to build andcrystallise value for all shareholders and partners. Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) adiversified resource investment house which together with its wholly ownedsubsidiary Cambrian Investments Holdings Limited holds approximately 50.12% ofthe issued share capital of the Company. A short description of the principal assets of Xtract is set out below. Theseassets are either held directly or through wholly owned subsidiaries of theCompany. MEO Australia MEO is focused on developing gas-to-liquids ("GTL") projects in the Timor SeaAustralia, in an area of shallow water known as Tassie Shoal. It has securedCommonwealth Government environmental approvals for two large scale (1.8 Mtpa)methanol plants (50 per cent. interest) and a 3 Mtpa LNG plant (100 per cent.interest) which are adjacent to the Evans Shoal gas field. Elko Energy Elko is an oil & gas exploration company which has an interest in a 5,370km2exploration and production licence in the Danish North Sea and an investment inDragon Energy Inc, a private Canadian company, with a development project inGansu Province, China. Wasabi Energy Wasabi is a diversified investor in renewable energy and low greenhouse emissiontechnologies, with interests in geothermal waste/heat, uranium exploration inAustralia's Northern Territory and biodiesel investments in Victoria. Central Asian Interests Xtract's Central Asian interests include a production sharing agreement withKyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oilfield. Xtract also holds interests in several exploration licences in the TashKumyr area and in the Toktogul exploration licence. Oil Shale Xtract has oil shale and related petroleum product exploration rights over mining tenements in the Julia Creek area of Queensland and was granted an exploration permit which gives rights to explore for oil shale in an area in the South of New Zealand. It is investigating the commercial production of hydrocarbons (crude oil) from oil shale. Xtract is also available for trading on the open market segment of the FrankfurtStock Exchange (ticker R9X.FSE). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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